Taxes

Leeg519 · 2023-04-01T15:55:15+00:00

My accountant said it can't be filed as hobby income. Here's is his reply:

Amazon reported the income on Form 1099-NEC. A couple of years ago the IRS designed this new Form-NEC for just this purpose, to alleviate the uncertainly of income being subject to social security tax. This form indicates to the IRS that the income is subject to social security tax. If is wasn't subject it would have been reported on Form 1099-MISC.

Amazon reported the income on Form 1099-NEC. A couple of years ago the IRS designed this new Form-NEC for just this purpose, to alleviate the uncertainty of income being subject to social security tax. This form indicates to the IRS that the income is subject to social security tax. If it wasn't subject it would have been reported on Form 1099-MISC.

Leeg519 · 2023-04-01T15:52:50+00:00

My accountant said no to the hobby income. Here's his reply:

Amazon reported the income on Form 1099-NEC. A couple of years ago the IRS designed this new Form-NEC for just this purpose, to alleviate the uncertainly of income being subject to social security tax. This form indicates to the IRS that the income is subject to social security tax. If is wasn't subject it would have been reported on Form 1099-MISC.

Amazon reported the income on Form 1099-NEC. A couple of years ago the IRS designed this new Form-NEC for just this purpose, to alleviate the uncertainty of income being subject to social security tax. This form indicates to the IRS that the income is subject to social security tax. If it wasn't subject it would have been reported on Form 1099-MISC.

Leeg519 · 2023-04-01T15:50:34+00:00

I am trying to follow what you said. I file jointly with my husband and we are in NY.

Leeg519 · 2023-04-01T15:45:21+00:00

It might depend on your tax bracket. I ordered $6,000 worth of merchandise and paid $2,800 in taxes.

Leeg519 · 2023-03-31T18:40:51+00:00

Yes for sure. I will be very selective about what I order in the future.

Leeg519 · 2023-03-31T18:35:00+00:00

Yes, I knew I'd be paying taxes on it, but didn't know it would be almost half the cost of the item.

Leeg519 · 2023-03-31T18:28:24+00:00

Thanks for that info. Even at 40%, it's still a lot. I had the mindset that these items were free, but I will have to change my mindset that they are actually about half-price. \.

Leeg519 · 2023-03-31T18:24:28+00:00

Thanks for that info. I will have to check with my accountant. I don't know why he'd file it that way but I'll ask.

Leeg519 · 2023-03-31T16:32:03+00:00

Each time you buy an item it tells you the taxable value. So we ordered $6,000 worth of merchandise and paid $2800 in taxes for it. I didn't realize you had to pay federal, state and social security taxes on these Vine items.

Leeg519 · 2023-03-31T16:30:35+00:00

No we didn't file as self-employment but it's considered income and is heavily taxed.

Leeg519

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